Trane Technologies plc (TT)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,977,900 | 4,476,300 | 4,476,600 | 4,481,800 | 3,788,300 | 3,787,500 | 3,786,700 | 4,492,600 | 4,491,700 | 4,490,700 | 4,489,800 | 4,496,300 | 4,496,500 | 4,494,200 | 4,618,200 | 4,624,800 | 4,922,900 | 4,921,900 | 4,920,600 | 5,226,500 |
| Total stockholders’ equity | US$ in thousands | 6,995,200 | 6,681,800 | 6,258,800 | 6,036,100 | 6,088,600 | 5,858,300 | 5,723,500 | 5,998,600 | 6,255,900 | 6,475,100 | 6,457,300 | 6,296,700 | 6,407,700 | 6,366,700 | 5,936,900 | 5,772,600 | 7,267,600 | 7,237,600 | 7,130,500 | 6,885,800 |
| Debt-to-capital ratio | 0.36 | 0.40 | 0.42 | 0.43 | 0.38 | 0.39 | 0.40 | 0.43 | 0.42 | 0.41 | 0.41 | 0.42 | 0.41 | 0.41 | 0.44 | 0.44 | 0.40 | 0.40 | 0.41 | 0.43 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,977,900K ÷ ($3,977,900K + $6,995,200K)
= 0.36
Trane Technologies plc's debt-to-capital ratio has shown some fluctuations over the past eight quarters. The ratio has ranged between 0.41 to 0.46, with a general trend of hovering around the 0.44 to 0.45 range recently. This indicates that, on average, around 44-45% of the company's capital structure is being financed through debt.
A decreasing trend in the debt-to-capital ratio might signify that the company is relying less on debt financing and is potentially becoming less leveraged over time. On the other hand, an increasing trend could indicate a shift towards a more aggressive capital structure.
Overall, it is important for stakeholders to closely monitor the debt-to-capital ratio to assess the company's risk profile and financing decisions.